Challenges of Ecotourism in the Financial Empowerment of Local Communities in Madhya Pradesh, India: A Theoretical Study

DOI: https://doie.org/10.10399/APER.2026273768

Authors:

Yashwant Alava, Dr. Manisha Jain

Keywords:

Ecotourism; Local Communities; Financial Empowerment; Madhya Pradesh; Sustainable Livelihoods; Community Based Ecotourism; Revenue Leakage; Governance.

Abstract:

This is a theoretical study on the impediments in achieving financial empowerment of local communities through ecotourism in Madhya Pradesh, India.While the state boasts such a tremendous amount of biodiversity, and there are a number of policies in place that support the development of ecotourism like the Madhya Pradesh Responsible Tourism Mission (MPRTM), various systemic barriers impede the transformative potential of ecotourism. Revenue leakage, access to credit, fluctuating income throughout the year, and limited market connectivity are all key economic issues that are limiting the ability to retain benefits in local economies in an equitable way. In addition, governance challenges like poor institutional coordination, policy implementation, low local participation, and lack of transparency in benefit sharing further limit local control and ownership. Social and cultural barriers slowing inclusive participation and genuine empowerment include gender imbalance, cultural commodification, and intra-community inequalities. The livelihoods relying on natural resources are facing sustainability challenges due to environmental and spatial constraints such as unregulated tourism, ecological degradation and limited access to forest resources as a result of conservation policies. There are gaps in skills and knowledge within the hospitality sector, financial literacy, digital promotion and enterprise management, which restrict participation of the community in higher-rewarding tourism activities. The study also identifies the Sustainable Livelihoods Framework, Community Based Ecotourism Model and political economy concepts to show how these challenges are linked and reinforcing. It emphasizes the importance of targeted capacity building, harmonized governance between forest and tourism authorities, enforcement of ecological carrying capacities, more financial inclusion, and transparent benefit sharing, among others. The results highlight the need for a comprehensive development strategy for ecotourism, one that goes beyond mere tourism development, because it must tackle structural economic, social, institutional and environmental obstacles that hinder its development and potential for financial empowerment. It is a multi-dimensional approach that is important for Madhya Pradesh and can provide lessons for other contexts looking for sustainable, inclusive tourism-led development.

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